6 things Australian traders will be talking about this morning

Good morning.

To the scoreboard:

  • Dow: 24,442.92 -245.39 (-0.99%)
  • S&P500: 2,641.25 -17.44 (-0.66%)
  • AUD/USD: 0.7056 -0.0040 (-0.56)
  • ASX SPI futures (December contracts): 5,653 (-51)

1. US stocks gave up early gains to finish in the red, and ASX futures are down sharply following yesterday’s rally. Falls in the US were again led by the big tech stocks, as the NASDAQ finished more than 2% lower.

Markets Insider

2. Lingering US-China trade fears weighed on sentiment, amid reports that President Trump is preparing tariffs on all Chinese exports to the US. The announcement could come as soon as December if scheduled talks between Trump and China’s Xi Jinping in November don’t lead to a resolution.

3. The Aussie dollar lost ground as the USD strengthened against most of the major pairs. US bond yields were little-changed after consumer spending data showed core PCE inflation rose at 2% (matching forecasts) for the fifth straight month — at the low end of the US Fed’s target 2-3% range.

4. Stocks in Brazil briefly hit a record high and the Brazilian real rose to five-month high, following the election victory of far-right candidate Jair Bolsonaro over the weekend. But both moves then reversed, as the currency lost 2% against the USD and the Bovespa stock index finished in the red.

5. Italian stocks rose by almost 2% after S&P Global kept Italy’s credit rating steady, although the outlook was downgraded stable to negative. Markets are awaiting the next development on Italy’s budget dispute with the EU.

6. And the euro traded in a narrow range, as the market reaction was relatively muted following news that German chancellor Angela Merkel will step down as leader of her party. Traders also largely ignored last night’s release of the UK budget, as the pound drifter lower against broader USD strength.

Here’s a look at today’s economic calendar:

  • Australian building approvals data for September (11:30am AEST).
  • RBA’s Michelle Bullock gives a speech called “Economic and Financial Stability in Australia”.

Have a great day.

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